Portuguese VAT fraud network spanning Europe and China busted

Portugal’s law‑enforcement agencies have uncovered two extensive fraud operations. The first, known as Operation Admiral, revealed the EU’s largest VAT fraud scheme, with losses estimated at up to €2.9 billion. Investigators traced almost 9,000 temporary companies and more than 600 individuals across 30 countries, including the United Arab Emirates, the United States and China. The mastermind, a self‑taught Franco‑Thai IT specialist, has been sentenced to seven years in prison.

The second case involved a criminal ring operating in the Vila do Conde industrial zone that laundered about €88 million from sales without invoicing to China. Twenty‑two people, including 14 Chinese nationals, were charged with 284 offences such as document forgery, money‑laundering and organized crime. Police seized over €1.5 million in cash and several high‑end vehicles, placed key suspects in preventive detention and have asked for their expulsion from Portugal.